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PepsiCo, Inc. (PEP) Gross Margin: 54.06%

Is PepsiCo, Inc.’s gross margin high or low?

PepsiCo, Inc.'s gross margin of 54.06% is in line with its 5-year average of 54.02%, around the middle of its 5-year range (53.03%–54.82%).

As of Thursday, June 11, 2026. 0.53% below its 12-month average of 54.35%.

PEP Gross Margin Chart

PEP Gross Margin
54.15%-0.73% 1Y
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PEP Average Gross Margin Chart

PEP Current vs Average Gross Margin Chart

PEP Gross Margin Metrics

GROSS MARGIN

54.06%

GROSS MARGIN AVG TTM

54.35%

GROSS MARGIN AVG 3Y

53.99%

GROSS MARGIN AVG 5Y

54.02%

GROSS MARGIN AVG 10Y

54.36%

GROSS MARGIN AVG 15Y

53.93%

GROSS MARGIN AVG 20Y

54.06%

CURRENT VS TTM AVG

-0.53%

CURRENT VS 3Y AVG

+0.14%

CURRENT VS 5Y AVG

+0.08%

CURRENT VS 10Y AVG

-0.55%

CURRENT VS 15Y AVG

+0.25%

CURRENT VS 20Y AVG

+0.01%

PEP Competitors' Gross Margin

NAMEMARKET CAPGROSS MARGINTTM3Y5Y
PepsiCo, Inc. (PEP)$197.83B54.06%54.35%53.99%54.02%
Anheuser-Busch InBev SA/NV (BUD)$157.22B55.67%55.59%54.88%55.85%
Altria Group, Inc. (MO)$121.59B67.84%78.43%73.85%70.69%
Monster Beverage Corporation (MNST)$89.55B55.47%54.95%53.33%54.78%
Colgate-Palmolive Company (CL)$71.98B60.06%60.17%58.66%59.01%
Target Corporation (TGT)$59.43B28.14%28.07%27.89%27.51%
The Procter & Gamble Company (PG)$345.14B50.33%51.27%49.46%49.90%
Keurig Dr Pepper Inc. (KDP)$43.13B53.78%54.88%54.10%54.54%
The Kroger Co. (KR)$39.51B23.30%23.00%22.75%22.34%
Sysco Corporation (SYY)$37.61B18.54%18.46%18.29%18.28%

Gross Margin Analysis

Gross Margin

54.1%

(Revenue - COGS) / Revenue

PepsiCo, Inc. Gross Margin Formula & Definition

Gross Margin = Gross Profit / Revenue

Gross margin is the percentage of revenue remaining after the cost of goods sold, reflecting core product profitability.

Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute

PepsiCo, Inc. Gross Margin FAQ

What is the gross margin for PepsiCo, Inc. (PEP)?
The gross margin for PEP stock is 54.06%.
Is PepsiCo, Inc.'s gross margin high or low?
PepsiCo, Inc.'s gross margin of 54.06% is in line with its 5-year average of 54.02%, around the middle of its 5-year range (53.03%–54.82%).
What is the TTM average gross margin for PepsiCo, Inc. (PEP)?
The TTM average gross margin for PEP stock is 54.35%.
What is the 3Y average gross margin for PepsiCo, Inc. (PEP)?
The 3Y average gross margin for PEP stock is 53.99%.
What is the 5Y average gross margin for PepsiCo, Inc. (PEP)?
The 5Y average gross margin for PEP stock is 54.02%.
What is the 10Y average gross margin for PepsiCo, Inc. (PEP)?
The 10Y average gross margin for PEP stock is 54.36%.
What is the 15Y average gross margin for PepsiCo, Inc. (PEP)?
The 15Y average gross margin for PEP stock is 53.93%.
What is the 20Y average gross margin for PepsiCo, Inc. (PEP)?
The 20Y average gross margin for PEP stock is 54.06%.

PepsiCo, Inc. Gross Margin History

DATEGROSS MARGIN
2025-12-2754.15%
2024-12-3154.55%
2023-12-3154.21%
2022-12-3153.03%
2021-12-3153.35%
2020-12-3154.82%
2019-12-3155.13%
2018-12-3154.56%
2017-12-3154.67%
2016-12-3155.06%
2015-12-3154.44%
2014-12-3153.15%
2013-12-3152.96%
2012-12-3152.22%
2011-12-3152.49%
2010-12-3154.05%
2009-12-3153.51%
2008-12-3152.95%
2007-12-3154.30%
2006-12-3155.14%
2005-12-3156.46%
2004-12-3156.69%
2003-12-3154.10%
2002-12-3154.22%
2001-12-3154.28%
2000-12-3159.86%
1999-12-3158.85%
1998-12-3162.78%
1997-12-3163.58%
1996-12-3162.70%

About PepsiCo, Inc.

PepsiCo, Inc. is a global enterprise that creates, promotes, and supplies a diverse array of drinks and easy-to-prepare food items across the globe. Its operations are structured into seven primary divisions: Frito-Lay North America, Quaker Foods North America, PepsiCo Beverages North America, Latin America, Europe, Africa/Middle East/South Asia, and the Asia Pacific, Australia, New Zealand, and China Region. The company's extensive product catalog encompasses popular snack foods like various dips, cheese snacks, spreads, and a range of chips (including corn, potato, and tortilla varieties). Its pantry staples feature cereals, rice, pasta, baking mixes, beverage syrups, granola bars, grits, oatmeal, rice cakes, and ready-made side dishes. In the beverage sector, PepsiCo offers concentrated syrups, fountain beverages, pre-packaged drinks, ready-to-consume teas, coffees, fruit juices, dairy-based items, and home carbonation systems with associated goods. PepsiCo reaches its broad clientele, which includes wholesale partners, food service providers, various retail outlets like supermarkets, pharmacies, convenience shops, discount stores, large-format retailers, membership-based stores, hard discount retailers, online merchants, and approved independent bottlers. This widespread distribution is achieved via direct store delivery, customer warehouse systems, and comprehensive distributor networks, along with direct sales to consumers through digital commerce channels and retail partners. Established in 1898, the corporation maintains its principal office in Purchase, New York.

Purchase, NY
319,000 employees
Consumer Defensive / Beverages - Non-Alcoholic
Sector
Consumer Defensive
Industry
Beverages - Non-Alcoholic
CEO
Ramon Luis Laguarta